Minggu, 07 April 2013

Advantages of low interest credit cards

If you have excellent credit, you must shop around for low interest credit cards. Get favorable rates you save can help finance charges that may be required to pay each month. Finance charges will be evident on your billing statement if you carry a balance as compared to the previous month.

If you’re currently money by any financial organization, a card with low interest rates may be ideal for you. It is essential to read and understand the fine print of paper before signing the contract. Only then will you be able to take advantage of low-interest credit cards, which include:

Affordable interest rates

Because interest rates are low, you don’t have to worry about this particular aspect of your paper. Interest rates are generally applied to accounts which carry balances. For example, if you have a balance of $ 1,000 and the Charter gives 11.9% interest rate, you will have to pay $ 4.95. That’s pretty low compared to standard cards for people with poor credit rating. If the card has a high rate of 21.9 percent, the balance of $ 500 will cost you $ 9.13 finance charges alone.

Lower taxes

If you plan to move to a low-interest card, this may be a good idea, especially if you are unable to repay the debts. This type of card can help you save money by eliminating payment of punitive sanction. There are also cards that do not harm your credit score. Then, it gets a little breathing room, and hopefully you will be able to repay the loan or your balance on your next rebate program.

Shorter period for Payoff balance

With the low-interest card, you can pay off your debt immediately. For example, if your budget is $ 1,000 and that alone can afford to pay $ 50 per month. You will be able to repay the money you owe within 23 months, if the interest is at 11.9%. If you have an interest rate of 21.9%, you need 25 months to pay the debt. In addition, there is an additional charge of $227 based on the interest charge.

Less than minimum required payment

This is one of the most important advantages offered by cards with low interest. If you have a large balance at this time and we know he will continue to rotate for many years, it may be useful if moved to a low-interest card like this has lower minimum payments that you pay each month. If you pay the same amount that you are currently paying with your high interest account, it will be much easier to reduce the amount they borrowed. Reducing compound interest is even easier to achieve.

Best deals Intro

Cards that have low interest rates usually don’t offer fancy features and rewards to cardholders. However, most of them have better introductory offers. Nowadays it’s easy to find a card that has 0% interest on purchases and balance transfers for several months. Such offers will provide more savings because you don’t have to pay taxes.

You can find a number of issuers that provide these types of cards. Find one that fits your needs and start enjoying the benefits that it offers.